Strategy Analytics: Slow Growth Forecast for $1 Trillion Mobile Services Market

New Report Finds 2010's Post-Recession Recovery to be Short-Lived

BOSTON--()--Although mobile service revenue growth accelerated in 2010 as mobile operators benefitted from growing consumer spend after the recession, a similar boost in 2011 is unlikely. The Strategy Analytics Wireless Operator Strategies (WOS) service report, “Worldwide Cellular User Forecasts and 2011 Market Trends,” predicts revenue growth will slow to 4% in 2011 as the sector crawls toward the $1 trillion revenue mark.

Mobile subscriptions will pass 6 billion this year as the world moves towards a 100% penetration rate by early 2014. Significant new subscription growth opportunities exist for mobile operators in new connected device categories, even though increasingly saturated markets for traditional mobile voice services will result in a slow-down in global growth rates.

“2010 was a good year overall for mobile operators due to the improving macro-economic climate,” commented Phil Kendall, Director, Wireless Operator Strategies and author of the report. “However, we will not see a return to pre-recession growth rates as subscription growth moves to more marginal industry segments and mobile voice, the industry cash cow, reaches its peak.”

Susan Welsh de Grimaldo, Director, Mobile Broadband Opportunities, adds, “With growth still concentrated in developed markets, 3G and 4G networks increasingly dominate the revenue picture and will account for half of all worldwide mobile service revenues this year. Beginning next year, Global 2G subscriptions will begin to fall as more affordable 3G devices allow operators to push services beyond higher-spending segments.”

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/

Contacts

Strategy Analytics, Inc.
European Contact:
Phil Kendall, +44 1908 423620
pkendall@strategyanalytics.com
or
US Contact:
Susan Welsh de Grimaldo, +1 617 614 0724
swelshdegrimaldo@strategyanalytics.com

Release Summary

This Strategy Analytics Wireless Operator Strategies report on worldwide cellular users predicts revenue growth will slow to 4% in 2011 as sector crawls toward the One Trillion Dollar revenue mark.

Contacts

Strategy Analytics, Inc.
European Contact:
Phil Kendall, +44 1908 423620
pkendall@strategyanalytics.com
or
US Contact:
Susan Welsh de Grimaldo, +1 617 614 0724
swelshdegrimaldo@strategyanalytics.com